The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1887-12-15
1lG Message.
President Cleveland Sends His An
nual Communication to the Com
gress of the United States.
The Discussion of the Tariff and the Treat
sury Accommodations its Sole Aims
and Features.
How the Growing Surplus in Government
Vaults Endangers Americas Flnan-
cial Prosperity.
The Cause for This Accumulation to be
Found in the Present System of
Taxation.
npT,
thorough and Complete Revision of the
Tariff the Only Remedy for q Dam
gerous Evil.
Reducing the Expenses of the Masses, bu
Not Imperiling the Welfare of
American Industries.

WASHINGTON, D. c., Dec. 6.-The presi-
dents message, which has just been sub
mitted to Congress, is as follows:
ITO the Congress Of the United States:
You are confronted at the threshold of
your legislative duties with condition of
the national finances which imperatively
demands immediate and careful consider
alton. The amount of money annually
eXacted, through the operation of present
laws, from the industries and necessities
of the people largely exceed the sum ne
cessary to meet the expenses of the gov
ernment.
''When we consider that the theory of
our institutions guarantees to every citi-
zen the tull enjoyment of all the fruits of
his industry and enterprise, with only such
deduction as may be his share toward the
careful and economical maintenance of
the government which protects him, it is
plain that the eXaction of more than this
is indefensible eXtortion and culpable be-
trayal of American fairness and Justice
This wrong inflicted upon those who bear
the burden of national taxation, like other
wrongs, multiplies brood of evil conse-
quences. The public treasury, which
should only exist as conduit conveying
the peoples tribute to its legitimate objects
of Expenditure becomes hoarding-place
for money needlessly withdrawn from
trade and the peoples use thus crippling
our national energies, ,suspending our coun-
try'S development, preventing Investment
nauclal disturbance, and inviting schemes
of public plunder-
This condition of our treasury is not
altogether new; and it has more than once
of late been submitted to the peoples re-
representatives. i'll the congress, who alone
can apply aremedy. And yet the situation
still continues, with aggravated incidents
more than ever preSaging financial con-
vulsion and widespread disaster 1t will
not do to neglect this situation because its
dangers are not now palpably imminent
and apparent They exist none the less
certainly, and await the unforeseen and
unexpected occasion when suddenly they
will be precipitated upon u.s.
TIE ExPEDIENTs REsoRTED TO-
''On the 30th day of June, 1885 the ex-
cess OF revenues over public expenditures
after complying with the annual require
ment of the sinking-fund act, was ST ,S59-
335.S4. During the year ended June 80,
1886, such excess amounted to $40 405, ,545. 20.
and during the year ended June 30 1887, it
reached the sum OF $50, So, ,S49. "a The an
nual contributions to the sinking-fund
during the three years above specified,
amounting in the aggregate to S13S, ,05S,-
5000, and deducted from the surplus as
stated, were made by calling in for that
purpose outstanding per cent. bonds of
the government. During the six months
prior to June 80, 1887, the surplus revenue
had grown so large by repeated accumula-
tiOns, and it was feared the withdrawal of
people would SO affect the business of the
country, that the sum of $40, ,s64. 100 of such
surplus was applied to the payment of the
principal and interest of the 3 per cent.
bonds still outstanding, and which were
then payable at the option of the govern
ment.
1.-The precarious condition of financial
affairs among the people still needing re-
lief, Immediately after the Both day of
June, 1887, the remainder of the per Cent
bonds then outstanding, amounting. with
principal and interest, to the sum of S1S,
81, 500, were called in and applied to the
sinllinG-fund contribution for the current
fiscal year. Notwithstanding these opera
tions of the treasury department, repre-
sentatiOnS of distress in business circles
not only continued but increased and alb
solute peril seemed at hand. In these cir
cumStanceS the contribution to the sink
ing-fund for the current fiscal year was at
once completed by the expenditure of $27,-
6S4, ,2S3 90 in the purchase of government
bonds not yet due bearing and 4 1-2 per
cent interest, the premium paid thereon
averaging about "a per cent. for the former
and per cent. for the latter. In addition
to this the interest accruing during the
current year upon the outstanding bonded
indebtedness of the government was TO
some extent anticipated and banks select
ed as repositories of public money were
permitted to somewhat increase their de-
poSitS.
while the expedients thus employed to
release to the people the money lying idle
in the treasury served to avert immediate
danger, our surplus revenues have contln-
ued to accumulate, the excess for the pres
ent year amounting on the 1st day of De
cember to So, ,25S, ,701. 10. and estimated to
reach the sum of S113, 900 on the 30th
of June next, at which date it is expected
that this sum, adeed to prior accumula-
tionS, will swell the surplus in the treas
ury to $40, 10000
n hQ M
with such withdrawal from use OF the
peoples circulating medium our business
community may not in the near future be
subjected to the same distress which was
quite lately produced from the same cause.
And while the functions OF our national
treasury should be few and simple, and
while its best condition would be reached,
l believe, by its entire disconnection with
private business interests, yet when, by
perVerSion OF its purposes. 1T idly holds
money uselessly subtracted from the chan
nelS of trade, there seems to be reason for
the claim that some legitimate means
should be devised by the government to
restore in an emergency, without waste or
extravaganza, such money to its place
among the people.
A REMEDY IMPERATIvELY NECESSARY.
''If such an emergency arises there now
exists no clear and undoubted executive
power of relief. Heretofore the redemp-
tion of the 3 per cent. bonds, which were
has afforded a means for the disbursement
of the excess of our revenues; but these
bonds have all been retired and there are
no bonds outstanding the payment OF
which we have the right to insist upon.
The contribution to the sinking-fund,
which furnishes the occasion for expendi-
ture in the purchase of bonds, has been al
ready made for the currenG year, SO that
there is no outlet in that direction. In the
present state of legislation the only pre-
nf
restore at this time any part of our surplus
revenues to the people by its expenditure
consists in the supposltion that the secre-
tary of the treasury may enter the market
and purchase the bonds of the government
not yet due at Il rate of premium to be
agreed upon.
The only provision of law from which
such power could be derived is found in
an appropriation bill passed number of
/ years ago, and it is subject TO the SuS-
picion that it was Intended as temporary
and limited i'll its application, instead of
| comforting a continuing discretion and
authority. No condition ought to exist
! which would justify the grant of power to
! q single official, upon his Judgment of its
| necessity, to withhold from or release to
/ the business of the people, in an unusual
manner, money held in the treasury, and
J thus affect, at his will, the financial situa-
wise TO lodge in the secretary of the treas
ury the autnority in the present juncture
! to purchase bonds it should be plainly
! vested, and provided as far as possible,
with such checks and limitations as
will define this officials right and discre-
ton, and at the same time relieve him
/ from undue responsibility.
''In considering the question of purchas-
: ing bonds as means of restoration to cir
culation the surplus money accommodating
I in the treasury 1T should be borne in mind
that premiums must of course be paid
| npon such purchase, that there may be q
large part of these bonds held as invest
ments which cannot be purchased at any
! price, aud that eombinatl3Ra Am9pS bold